Taiwan retail chain Tsann Kuen raises HK$59 million from selling shares in China subsidiary

Tsann Kuen Enterprise, the operator of the Tsann Kuen retail chain in Taiwan, on June 30 announced it has disposed of a stake in Tsann Kuen (China) Enterprise, its subsidiary which makes electrical home appliances in southeastern China, for a net capital gain of HK$59.53 million (US$7.68 million). Its stake in the subsidiary has decreased from 60.13% to 55.32%.

Tsann Kuen's net operating profit for the second quarter of 2009 is expected to drop considerably on quarter, but the non-operating income from the share sell-off will help offset the losses on its balance sheet, industry sources commented.